Janet Yelen: "When I said inflation would be transitory, I was not anticipating..." ...that you'd actually call me out for my incompetence and dishonesty.
If the inflationary pressure was due strictly to supply chain interruption, then it would have been transitory. But in addition to the supply issues we created "printed" 5 trillion dollars, passed it out to state governments, dropped interest rates to the floor. The echoes of the payment for the covid relief will be heard for some time. Inflation hurts the wealthy the least, it is the least progressive form of "taxation". Now Powell is trying his best to kill continued inflation without lots of job losses, especially the middle and lower classes. I said "continued inflation" since the prospects of price deflation back to a few points above pre-covid levels won't be possible without heavy job losses in a recession. That's one of the lousy things about inflation....it's easy for the government to cause it, and very hard to wring it out of the economy. Keep this in mind regarding politicians, regardless of their campaign claims, they do NOT create prosperity, but they sure as hell can mess up the works. If they "do no harm", and create a stable environment for business, that's a pretty good run. It bugs the heck out of me to hear Greenspan talk like that, "we will always pay our debt, cause we can print money". He knows full well that you can't just print money to pay for government, and that it is a tax on the money itself, but foolish politicians take that nonsense and use it to justify irresponsibility.
Inflation IS transitory. Other things that are transitory include the existence of the economy, or even the existence of the human species. Even the existence of Earth itself is transitory.
@@Russell_Huston I always thought the artificial increase, oil, and particularly diesel prices. May have been an accelerant in this, if only everyone, that deliver these goods, would have just eaten the substantial cost.
Quote that lives in my head rent free: "you may not be interested in politics, but politics is interested in you" AKA you cant run away, you cant hide, you cannot opt out, from the moment you were born you were a customer and a slave.
The federal reserve prints money out of thin air. Alan Greenspan was optimistic, but the government couldn't just keep printing to pay all the debt the government owed. The federal reserve prints money and loans it to the government, they than tax you to pay for that debt. If the government didn't tax you, they would rely on the printing. The problem is that the more the more they print, the less your money is actually worth. They have no other choice than to tax you. In a way, this is a form of socialism. Why? Because we all get taxed to pay for what the government owes to keep them around.
Gold requires trust in the government. Trust they won’t ban it. Trust they won’t dilute it. Trust they won’t overprint what they have in supply. Nah thanks
In the future, historians will say that on the second half of the 20th century the craziest thing we did was abandon the gold standard. Not because the gold standard is sacred or fail proof, but because you have an actual physical limit for the money going around your economy. If X dollars are worth X gold, no amount of retoric will make you sh*t more gold. Now politicians can just poof money into existance. Like I've said, it's not that simple and it's not like the gold standard is fail proof, but I'll take that any day before trusting politicians to tell how much money should be going around.
The point isn't having X amount of dollars natch X amount of gold. The point was that you just have your money moored to some commodity so that it remains our money. By getting rid of the Gold Standard they robbed control of the money away from citizens and gave control of it over to elitist and unelected central bank bureaucrats.
Presence of a central bank accumulates booms and busts in boom-bust cycle into big rally and total crash. If you hope to die peacrfully during rally, you would be motivated to keep it around - and boomers do
As much as I dislike aspects of the fed, there is no chance you can get rid of it without overhauling the financial system of the Us. And that would only be possible with going back to the gold standard or something similar. Which has not only many drawbacks but also is monetarily impossible now and would just further the US debt. Call it a necessary evil until the budget is balanced and the debt is stabilized.
@webweaver3015 increasing the supply and lowering rates right as the Crypto bullrun is primed for upside... Dont miss out on these cheap entry's Want larger gains go down the top 10 and get Cardano
It amazes me the people who scream it's price gouging by corporations. Like every single mom and pop grocery store had a meeting with all the major corporations like Safeway and Albertsons and conspired to screw people over. So idiotic.
You can increase the money supply without inflation. Currency in circulation multiplied by the Velocity of Circulation equals the consumer price index multiplied by real gdp. This is all ultimatly equal to nominal gdp. If a country grows its economy by 10% without a change in the money supply or velocity of money (how many times each dollar is spent per year), then you would expect a 10% deflation of the CPI for the year.
@@robertmunoz11they wanted to wait. You could tell based on their hesitation to not cut for the past 6 months but it is at a point where cutting rates is impossible to ignore. Truthfully though the fed funds rate doesn’t actually matter other than the fact that people think it has power
I’m making like 160k with 2 kids and no CC debt and my cars are paid off, and I live in/own a cheap townhouse and I’m still treading water barely staying even
Most amazing thing to me is that the public has No Idea that the FED is not part of the Government,and how they were tricked many many years ago into paper currency.
They all called him a crack pot. But look what mainstream politicians did. 12 years after he ran, the government has added about 20T of debt, horrible inflation, and SS/Medicare/Medicaid that are on the fast track to insolvency.
You should really take "econ 101." Some printing of money is actually very good for the economy. It only becomes a problem when too much is printed, such as what has happened over the last 4 years.
@@soundrightmusicyou should see the japanese monetary policy. They own about 5% of all japanese stocks (and many other assets) in an effort to stop deflation and hit 2% inflation. Only recently have they hit it, even with their negative interest rates.
It will take a few years to play out given how much money was spent by the federal government. They can't keep spending. The interest on our debt is so high that we won't be able to spend ourselves out of the problem.
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.... I believe that banking institutions are more dangerous to our liberties than standing armies.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." Thomas Jefferson
Had a guy yesterday contact me pushing hard to refinance. He swore the rate he quoted me at was going to be the best and they were expecting a 2.5 point reduction and it was already bake in. I told him I’m looking at the campaign polls and it’s going to be more than that. I win.
I love the music in this episode. I can watch it with the phone closed, and it turns into some mysterious retro future pre-apocalyptic stranger things show.
I've known since 2017 that the Federal Reserve was a problem the moment I started digging into how monetary policy really works. All it really is is to move wealth upward and make people on the bottom work harder for less.
When you have a gold standard it means that the government is unable to control interest rates. The effect is that the government cannot stimulate the economy to pull out of a recession or slow it to reduce inflation in high growth periods. The issue is the fiscal policy. Don't be distracted by monetary policy - if the government spends like crazy it doesn't matter if you are on a gold standard or inconvertible fiat system.
The difference is that people are much more apt to hold politicians accountable for reckless fiscal policy on a gold standard because the consequences are felt rather abruptly and dramatically. Not so easy to soften the blow or lull people into a false sense of security. It incentivizes politicians to generate actual fiscal problem solving, instead of adding to the debt and leaving it for someone else to deal with.
@@vincer7824 Historically speaking a central bank that has become politicized (i.e. elected and or tied to a presidency) has been a bad idea (e.g. Argentina in 80's and Venezuela today). The Fed has two jobs, dampen inflation and promote stable economic growth; it can't be caught up in changing administrations and it shouldn't be changing interest rates to cover for reckless spending. We the right, need to stop conflating fiscal irresponisbility with the Fed's duties - it needs to be a non-political entity.
@@Kingmeri Ok, but it's not a non-political entity. I don't see a way to make it a non-political entity. It's not sufficient for them to be deemed non-political simply because they could not be tied to a presidency because their decisions have tremendous political and real world consequences. Fed chairmen have political biases and perspectives that will inevitably shape their professional activity. There doesn't seem to be a way to ensure that those in charge of it can be made to behave ethically or to be held accountable if and when corrupt, since the legal system is inherently political, and their bureaucracy is unelected. I agree that we shouldn't conflate fiscal irresponsibility with the Feds role but it's entirely appropriate to criticize their existence and consider alternatives.
It is less political than say the treasury which is a cabinent position. The Fed chair is not able to be fired and is appointed mid-election cycle. This provides consistancy to the management of the economy (i.e. not perfect, but still superior to governments that make the central bank directly reportable to an elected office). The gold standard is full of problems. You still have effective interest rates (based on supply and demand of gold). This means that a demand increase of gold actionally recesses the economy (i.e. if a new computer hardware required more gold, then the entire economy would effectively experience a higher interest rate). Our enemies could also exert pressure on our economy simply by buying/selling gold reserves. Also, the rate of economic growth would be influenced based on the availability of gold supply. Manufacturing plants would not be built in the USA if there were gold mining shortages. Countries not beholden to commodity-backed currency would simply take market share from entire industries because we limited our growth potential. Again, it is much simplier to fix fiscal spending rather than implement drastic monetary policy gimmics. Not even Chicago school of economics proponents support a gold standard.
Isn't it great that the Fed has been able to keep wall street stable for so long? That way all the rich people who spend money horribly are protected while the rest of us can make up the difference through inflation... It's a wonderful system.
I go to lunch with some old guys from church once a week, they sometimes go down the rabbit hole of young people are lazy ETC, and I continuously point out all these issues have been around for decades and decades. Our economy has been getting destroyed for 100 years. It’s only gone into warp speed the last 20 after the realization that the American people will put no pushback on greed
The only thing that will save us is a modern version of the old ways. Stand-up show your independence become self-sufficient. Grow your own food create your own energy, rain, harvest, thrift shopping and more. I do these already. I’m on a journey to freedom.
"Let's look at the stats, I've got the facts My money like Lizzo, my pockets are fat Homie, I'm epic, don't be a WAP Dawg, it's a yarmulke, homie, no cap Look at the graphs, look at my charts You're blowing money on strippers and cars You're going to prison, I'm on television Dawg, no one knows who you are "Keep hating on me on the internet My comment section, all woke Karens And I make racks off compound interest Y'all live with your parents Nicki, take some notes I just did this for fun All my people download this Let's get a Billboard number one" - Dr. Dreidel, 2024 😎
If inflation was under 1% and the gdp was always growing, you could keep the fed while demanding fiscal responsibility from congress. We got none of those things.
The purpose is to get people to vote for Kamala. Lowering rates don't cause inflation, overspending, and printing does. Vote Trump. Vote Red on every level.
This is...just nonsense. Trump has quite literally said with his own mouth on numerous occasions during his most recent political rallies that wants to lower rates as well and effectively turn the money printer back on. There is no politician running in this race on either side that has any shred of fiscal conservative policy or desire to truly tackle our fiat currency related problems. To think that Trump will be the savoir of the economy is laughably obtuse when he himself was at the helm of $7.8 trillion in new debt during his term. But you do you - go off, Queen. Regardless of who wins, we lose.
Lowering rates in theory helps to decrease unemployment. That’s the reason they do it. If you listen to JPow he says over and over the risks of inflation are less serious now than the risks of unemployment.
A good follow up would be: what special interests created the Bank of England (central bank) model and what was the true ultimate goal in the creation of the central banking system?
I subscribed to Mr. Shapiros videos when I saw his recent video on dock worker strike, even though I gave up on AM radio in part because of his bloviation. I remember wondering if his producer was purposely leaching his sagacity and relevance by guiding him to those AM shows. Now, I find a way around to his excellence- the videos that say "Facts" are much more densely packed, useful for well studied persons, and those who want something apart from shock jocks, rants, raves (a la Mark Levin). Recommend these "Facts" videos as some of the most worthy videos seen online for some years now.
The fed fund rates really doesn’t have that much power. And also the Supreme Court exists. The reason is 1 the idea is you vote on people and they vote on more people. And 2 that some positions are meant to be bipartisan and few people would be bipartisan if it’s an elected position b/c they would gain more votes by appealing to 1 side specifically.
Are we really not talking about the fact that Jeney Yellen is now Treasury Secretary? We are supposed to believe that those people aren't political when there is a clear revolving door between them and the politics? It's the same in the EU, Draghi was in politics before leading the ECB.
The economy is doing so well, they're cutting rates. Scary. I'm actually surprised, honestly thought they wouldn't cut at all this year. I was waiting for a rug pull decision.
Saying that the government "can repay debt any time" may be true in the physical sense, as it (we) can always print or borrow more, but in a financial sense, we can't repay a penny. In fact, we'd have to reduce Federal spending by 61% for the government to have just enough left after paying expenses to pay ONE PENNY of debt (at that point, the government's income would be $ .01 higher than its expenses, so paying the penny of debt would mean we'd be at break-even. Since cutting Federal spending 61% will most likely not be seen as a potential solution, we could get there by raising taxes. Doing this would mean each of the 127 million U.S. households would pay an additional $1,965 a MONTH in taxes. I'm wondering if that might work.... Remember that just 23 years ago we had a small surplus (2001), so all we needed to do was just keep our spending at or below income and no extra spending cut or tax increase would be necessary for the Federal budget to at least be at break even..... Imagine your $80,000 household income is just enough to cover all your expenses and also pay your mortgage and car payment - nothing left over but at least paying all bills. Then imagine fast-forwarding and you're earning $100,000 but now have a larger car payment plus payments on an additional million dollars of credit card debt... Keep in mind that even with either of these nightmarish scenarios, it would only mean we'd have one penny to pay towards INTEREST, and still wouldn't allow us to repay any principal.
It acts as a failsafe in case the USD crashes because Golds value has been stable and rises against inflation. So if instead of saving 50k dollars in a savings account that'll only depreciate with inflation, you use that $50k to buy that much on gold, and that $50k in gold will only grow in value against inflation as the dollar becomes worth less and less.
@@Archangel657 I get that but I still don’t quite understand why we put so much value in gold? It is weak as an element. I get the the US dollar is just worthless paper but how is an element much better? Can gold solve all of my problems realistically? Or is it just because we can’t “print” gold the way we do with money?
There is actually an alternative I came up with. I call it a consumer’s alliance. It could be used to gain economic benefits for everyone including businesses for low taxes, low regulation and bailouts in exchange for access to our consumption power through light inflation without bankrupting the place on a non-consensual capital flight situation. Imagine a collective boycott in the form of a cryptocurrency.
Most likely a AI rendered version of a traditional American Landscape oil painting. Made famous by artist such as Jasper Francis Cropsey and Joshua Shaw.
When are you? But seriously, I don’t think there is a solution at this point above the individual level. Educate yourself on the problem and take the necessary steps to attempt to maintain some resemblance of security.
@@danielwessel9884 I like where your heads at, but I foresee two problems. One, just the impossibility of getting 3/4 of the states to agree on anything at the moment; two, COVID policy worked to establish the precedent that modern Americans will, for the most part, allow the suspension of their fundamental rights in the Constitution without too much fuss should there be a large enough fear campaign pushed for a given emergency. We all know the statistics by now regarding government debt and spending before, and after the pandemic. How would your amendment not be shelved as well at the time it would be needed most?
@@smokeydapot The same tactic will work. Fear is a big motivator. If the markets start believing that portions of the debt will not be paid ( which is where we are headed with interest payments now at 30% of tax revenue collected ) it suddenly provides a way out for Congress with their being thrown out of office if they don't do something and can use the amendment as a scapegoat why they can't fund pet projects. One way or another it will be dealt with, either a massive economic collapse when the government defaults, or serious belt tightening and massive cuts in government services, while troublesome don't have the same level of impact.
"If you don't design your own life's plan, chances are you'll fall into somebody else's plan. And guess what they have planned for you? Not much.'' Jim Rohn
When I started listening to Ben, well before Covid, if we had said what Ben said in the opening here, that the economy is controlled by Central Bankers, not only would we have been called conspiracy theorists, but even Ben himself would have called us that.
@@jwalesoutlaw3294mortgages aren’t tied to that rate and mortgage rates didn’t really change after that .50 reduction. The rate cut was a scam to help Kamala during the election.
![ปฏิเสธไม่ไหว (Crush on you) - LIPTA feat. No One Else [Official MV]](http://i.ytimg.com/vi/NBw1jF342vw/mqdefault.jpg)
Janet Yelen: "When I said inflation would be transitory, I was not anticipating..."
...that you'd actually call me out for my incompetence and dishonesty.
If the inflationary pressure was due strictly to supply chain interruption, then it would have been transitory. But in addition to the supply issues we created "printed" 5 trillion dollars, passed it out to state governments, dropped interest rates to the floor. The echoes of the payment for the covid relief will be heard for some time.
Inflation hurts the wealthy the least, it is the least progressive form of "taxation".
Now Powell is trying his best to kill continued inflation without lots of job losses, especially the middle and lower classes.
I said "continued inflation" since the prospects of price deflation back to a few points above pre-covid levels won't be possible without heavy job losses in a recession.
That's one of the lousy things about inflation....it's easy for the government to cause it, and very hard to wring it out of the economy.
Keep this in mind regarding politicians, regardless of their campaign claims, they do NOT create prosperity, but they sure as hell can mess up the works. If they "do no harm", and create a stable environment for business, that's a pretty good run.
It bugs the heck out of me to hear Greenspan talk like that, "we will always pay our debt, cause we can print money".
He knows full well that you can't just print money to pay for government, and that it is a tax on the money itself, but foolish politicians take that nonsense and use it to justify irresponsibility.
Her job is anticipating...
Inflation IS transitory. Other things that are transitory include the existence of the economy, or even the existence of the human species. Even the existence of Earth itself is transitory.
I can practically hear Milton Friedman screaming from his grave.
@@Russell_Huston I always thought the artificial increase, oil, and particularly diesel prices. May have been an accelerant in this, if only everyone, that deliver these goods, would have just eaten the substantial cost.
If the government can just keep printing money to “pay any debt they have” why are they taxing me?
To control inflation. Modern monetary theory is spend as much as you want now, tax after to shrink the money supply.
To control you.
Quote that lives in my head rent free: "you may not be interested in politics, but politics is interested in you" AKA you cant run away, you cant hide, you cannot opt out, from the moment you were born you were a customer and a slave.
The more they print, the less it's worth.
The federal reserve prints money out of thin air. Alan Greenspan was optimistic, but the government couldn't just keep printing to pay all the debt the government owed. The federal reserve prints money and loans it to the government, they than tax you to pay for that debt. If the government didn't tax you, they would rely on the printing. The problem is that the more the more they print, the less your money is actually worth. They have no other choice than to tax you. In a way, this is a form of socialism. Why? Because we all get taxed to pay for what the government owes to keep them around.
100k is the new 50k
Damn right 🎉😂
200k is the new 100k
What?
*100k is the new 10k.
“You will own nothing and be happy.”
- World Economic Forum (ally of the Democratic Party)
We need to abolish the Federal Reserve and get back on the gold standard.
It’s headed that way whether people like it or not. The fiat system is unsustainable
Gold requires trust in the government. Trust they won’t ban it. Trust they won’t dilute it. Trust they won’t overprint what they have in supply. Nah thanks
A basket of currencies would be better.
Gold included, of course.
or crypto 🌝
@@JeDxDeVuFiat currency requires far more trust in the government, actually more trust in unelected officials.
Is that an improvement?
More educational videos like this would be amazing! Keep them coming Ben
In the future, historians will say that on the second half of the 20th century the craziest thing we did was abandon the gold standard. Not because the gold standard is sacred or fail proof, but because you have an actual physical limit for the money going around your economy. If X dollars are worth X gold, no amount of retoric will make you sh*t more gold. Now politicians can just poof money into existance. Like I've said, it's not that simple and it's not like the gold standard is fail proof, but I'll take that any day before trusting politicians to tell how much money should be going around.
Gold was always destined to fail. Great for jewellery and electronics. Bad money.
@@JeDxDeVu Your opinion is moot. Central banks the world over disagree with you.
"So wait, they waited for a guy to tell them how much their money was worth?"
The point isn't having X amount of dollars natch X amount of gold.
The point was that you just have your money moored to some commodity so that it remains our money. By getting rid of the Gold Standard they robbed control of the money away from citizens and gave control of it over to elitist and unelected central bank bureaucrats.
The "Fed" has been screwing America since 1913!!!
Ben showing Ron Paul SCHOOLING Ben Bernanke makes me so happy! We need more Ron Paul’s in our government
The FED can’t repair the large deficit from the reckless spending. We still don’t have a balanced budget.
You better be prepped and stacked.
You SO better be!
lol ok
@@WeBeatMedicare6969 Keep laughing.
There is simply no preparing.
This is the stuff they don’t want us talking about
Central Banking needs to be dismantled. Let the markets do what the markets do.
Fine in theory but everywhere that has actually been tested has ended in disaster. To far the other way is also an issue
Bitcoin has entered the chat.
That literally caused the Great Depression
Presence of a central bank accumulates booms and busts in boom-bust cycle into big rally and total crash. If you hope to die peacrfully during rally, you would be motivated to keep it around - and boomers do
Good grief
We are so screwed from all sides
End the FED. Change my mind.
Nah. Its not going anywhere
As much as I dislike aspects of the fed, there is no chance you can get rid of it without overhauling the financial system of the Us. And that would only be possible with going back to the gold standard or something similar. Which has not only many drawbacks but also is monetarily impossible now and would just further the US debt. Call it a necessary evil until the budget is balanced and the debt is stabilized.
90% of economists believe the current system is better than fiat...
@WigglyCoop007 , That's not what Ron Paul argued.
@FaresMohamed-mi1vp what system is in place?
"...increases the money supply" - the definition of INFLATION!
@webweaver3015 increasing the supply and lowering rates right as the Crypto bullrun is primed for upside...
Dont miss out on these cheap entry's
Want larger gains go down the top 10 and get Cardano
It amazes me the people who scream it's price gouging by corporations. Like every single mom and pop grocery store had a meeting with all the major corporations like Safeway and Albertsons and conspired to screw people over. So idiotic.
You can increase the money supply without inflation. Currency in circulation multiplied by the Velocity of Circulation equals the consumer price index multiplied by real gdp. This is all ultimatly equal to nominal gdp. If a country grows its economy by 10% without a change in the money supply or velocity of money (how many times each dollar is spent per year), then you would expect a 10% deflation of the CPI for the year.
@@isaacdierker6159 Good luck with that. Where did you study economics? Time to ask for a refund of your tuition.
@@scarbo2229 where did you learn, your mom's house? If you want to actually fact check me, look at google. Its also in any beginner econ textbook.
Just in time for the election.
And if they don’t pull this steal off, they lower the rates even more and the market will crash for a hard start for Trump.
Don’t know why they couldn’t just wait 2 months to cut like you said just in time for the election
@@robertmunoz11they wanted to wait. You could tell based on their hesitation to not cut for the past 6 months but it is at a point where cutting rates is impossible to ignore. Truthfully though the fed funds rate doesn’t actually matter other than the fact that people think it has power
100k per year with 2 kids impossible to save any money at all
Homie, I’m at 69k with a wife and three kids.
I feel your pain.
We can hold hands in line at the soup kitchen
I’m making like 160k with 2 kids and no CC debt and my cars are paid off, and I live in/own a cheap townhouse and I’m still treading water barely staying even
@@scubadivingadventures1make 250k in NJ, no kids. You could say we live comfortably. Two full time professional jobs.
85k, 3 kids, Wisconsin. We basically live pay check to pay check. Although admittedly, we could crack down on spending a little more if needed.
Oh, spare me! I'm living under the poverty line. How sickening.
Most amazing thing to me is that the public has No Idea that the FED is not part of the Government,and how they were tricked many many years ago into paper currency.
Bring Ron Paul on
They all called him a crack pot. But look what mainstream politicians did. 12 years after he ran, the government has added about 20T of debt, horrible inflation, and SS/Medicare/Medicaid that are on the fast track to insolvency.
Discard the federal reserve, when you print money, you create inflation. Econ 101
You should really take "econ 101." Some printing of money is actually very good for the economy. It only becomes a problem when too much is printed, such as what has happened over the last 4 years.
@@rylanrussell9595nah money printing isn't good. Stability is so much more valuable.
Because even before the last 4 years we have been so great at hitting 2% inflation....
@@soundrightmusicyou should see the japanese monetary policy. They own about 5% of all japanese stocks (and many other assets) in an effort to stop deflation and hit 2% inflation. Only recently have they hit it, even with their negative interest rates.
@@rylanrussell9595Read Keynes and Friedman and Hayak
Abolish the FED, plain and simple.
And do what? Collapse the US economic system? With the current economic policies in congress the fed is a necessary evil
Ty for helping us understand this stuff
Because we're in for a soft, crash landing.
Like the kind where everyone manages to survive the initial impact, but then there's no food and people resort to cannibalism.
@@johnroberts3824 Don't forget you crashed in a remote snowy valley in the Himalayas and will be dead of exposure in 2 hours.
@@agentsmith404 Dang it!
It will take a few years to play out given how much money was spent by the federal government. They can't keep spending. The interest on our debt is so high that we won't be able to spend ourselves out of the problem.
Soft? The US national debt is $35 Trillion! It’s going to destroy everything and everyone!
End The Federal Reserve!
And leave the U.N.
@@NashLaoShi clowns, both of you
There is real and malevolent danger in centralized power.
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.... I believe that banking institutions are more dangerous to our liberties than standing armies.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." Thomas Jefferson
Precisely.
Love T-Dawg
You can print bank notes to infinity. Whether anyone else will accept them is another matter.
Had a guy yesterday contact me pushing hard to refinance. He swore the rate he quoted me at was going to be the best and they were expecting a 2.5 point reduction and it was already bake in. I told him I’m looking at the campaign polls and it’s going to be more than that. I win.
Ben, you rule dude. Thank you for all you do
I love the music in this episode. I can watch it with the phone closed, and it turns into some mysterious retro future pre-apocalyptic stranger things show.
I've known since 2017 that the Federal Reserve was a problem the moment I started digging into how monetary policy really works. All it really is is to move wealth upward and make people on the bottom work harder for less.
Yeah because the poor people don’t own assets unfortunately , the money they make/ and save becomes devalued
When you have a gold standard it means that the government is unable to control interest rates. The effect is that the government cannot stimulate the economy to pull out of a recession or slow it to reduce inflation in high growth periods.
The issue is the fiscal policy. Don't be distracted by monetary policy - if the government spends like crazy it doesn't matter if you are on a gold standard or inconvertible fiat system.
The difference is that people are much more apt to hold politicians accountable for reckless fiscal policy on a gold standard because the consequences are felt rather abruptly and dramatically.
Not so easy to soften the blow or lull people into a false sense of security.
It incentivizes politicians to generate actual fiscal problem solving, instead of adding to the debt and leaving it for someone else to deal with.
@@vincer7824 Historically speaking a central bank that has become politicized (i.e. elected and or tied to a presidency) has been a bad idea (e.g. Argentina in 80's and Venezuela today). The Fed has two jobs, dampen inflation and promote stable economic growth; it can't be caught up in changing administrations and it shouldn't be changing interest rates to cover for reckless spending.
We the right, need to stop conflating fiscal irresponisbility with the Fed's duties - it needs to be a non-political entity.
@@Kingmeri Ok, but it's not a non-political entity. I don't see a way to make it a non-political entity.
It's not sufficient for them to be deemed non-political simply because they could not be tied to a presidency because their decisions have tremendous political and real world consequences.
Fed chairmen have political biases and perspectives that will inevitably shape their professional activity.
There doesn't seem to be a way to ensure that those in charge of it can be made to behave ethically or to be held accountable if and when corrupt, since the legal system is inherently political, and their bureaucracy is unelected.
I agree that we shouldn't conflate fiscal irresponsibility with the Feds role but it's entirely appropriate to criticize their existence and consider alternatives.
It is less political than say the treasury which is a cabinent position. The Fed chair is not able to be fired and is appointed mid-election cycle. This provides consistancy to the management of the economy (i.e. not perfect, but still superior to governments that make the central bank directly reportable to an elected office).
The gold standard is full of problems. You still have effective interest rates (based on supply and demand of gold). This means that a demand increase of gold actionally recesses the economy (i.e. if a new computer hardware required more gold, then the entire economy would effectively experience a higher interest rate). Our enemies could also exert pressure on our economy simply by buying/selling gold reserves. Also, the rate of economic growth would be influenced based on the availability of gold supply. Manufacturing plants would not be built in the USA if there were gold mining shortages. Countries not beholden to commodity-backed currency would simply take market share from entire industries because we limited our growth potential.
Again, it is much simplier to fix fiscal spending rather than implement drastic monetary policy gimmics. Not even Chicago school of economics proponents support a gold standard.
@@Kingmeri Those are fair criticisms.
The background music reminds me of an upscale version of bail bonds commercials on the radio.
Love this new series! Thanks Ben🙏
Give your music guy a raise.
The subtext of this is that even if you own gold you can't eat it.
But you can buy food with it long after dollars have become extinct..
@@alanserjeant4947 Physical possession requires hardcore defense.
@@russrussel3947 Absolutely Russ.
Head up to your closest bar once they open, order a shot of goldschlager, then come back to this comment.
@@smokeydapot Is a tax-deferred IRA on paper with a $10,000 minimum buy-in a better option ? 🤡
It’s amazing how ignorant so many are about the Fed.
Fr.
This economy is like the slowest punch in the face ever
Good analogy.
$100 gets me what $20 used to
When he says "buying treasury bills and increasing the money supply" he really should say "printing new money and decreasing the value of your money"
When are you coming to london Ben? Regards from the UK 🇬🇧
Isn't it great that the Fed has been able to keep wall street stable for so long? That way all the rich people who spend money horribly are protected while the rest of us can make up the difference through inflation... It's a wonderful system.
The Creature from Jekyll island is a book that needs to be read in schools!
How in the f*** is Janet Yellen taken seriously?
I go to lunch with some old guys from church once a week, they sometimes go down the rabbit hole of young people are lazy ETC, and I continuously point out all these issues have been around for decades and decades. Our economy has been getting destroyed for 100 years. It’s only gone into warp speed the last 20 after the realization that the American people will put no pushback on greed
I FEEL this TRUTH!!!
The only thing that will save us is a modern version of the old ways. Stand-up show your independence become self-sufficient. Grow your own food create your own energy, rain, harvest, thrift shopping and more. I do these already. I’m on a journey to freedom.
"Let's look at the stats, I've got the facts
My money like Lizzo, my pockets are fat
Homie, I'm epic, don't be a WAP
Dawg, it's a yarmulke, homie, no cap
Look at the graphs, look at my charts
You're blowing money on strippers and cars
You're going to prison, I'm on television
Dawg, no one knows who you are
"Keep hating on me on the internet
My comment section, all woke Karens
And I make racks off compound interest
Y'all live with your parents
Nicki, take some notes
I just did this for fun
All my people download this
Let's get a Billboard number one"
- Dr. Dreidel, 2024 😎
Whole culture is 🗑
....."N!&&@H!!!.... You Rock!!"
What does this mean?
Sounds like a whole buncha oo oo ee ee to me
@@luckycoww4742it’s a rap song Ben did with Tom McDonald
How can we undo this? How can we go back to the gold standard?
We need a consevative fiscal policy now more than ever
Well that’s not trump… def not Kamala so. Looks like we’re screwed
If inflation was under 1% and the gdp was always growing, you could keep the fed while demanding fiscal responsibility from congress.
We got none of those things.
The purpose is to get people to vote for Kamala. Lowering rates don't cause inflation, overspending, and printing does. Vote Trump. Vote Red on every level.
This is...just nonsense. Trump has quite literally said with his own mouth on numerous occasions during his most recent political rallies that wants to lower rates as well and effectively turn the money printer back on. There is no politician running in this race on either side that has any shred of fiscal conservative policy or desire to truly tackle our fiat currency related problems. To think that Trump will be the savoir of the economy is laughably obtuse when he himself was at the helm of $7.8 trillion in new debt during his term. But you do you - go off, Queen. Regardless of who wins, we lose.
Trump increased the federal deficit far more than Biden. Vote Blue!
*eyeroll* This problem didn't start in 2024, but 1913.
Lowering rates in theory helps to decrease unemployment. That’s the reason they do it. If you listen to JPow he says over and over the risks of inflation are less serious now than the risks of unemployment.
The fact that our money is not tied to some sort of asset is terrifying
A good follow up would be: what special interests created the Bank of England (central bank) model and what was the true ultimate goal in the creation of the central banking system?
House Joint Resolution-192 of June 5th 1933, Public Law 73 - 10.
Their power is our perception of their power, no one has any power that we don't give them. We give them all the power that they have.
I subscribed to Mr. Shapiros videos when I saw his recent video on dock worker strike, even though I gave up on AM radio in part because of his bloviation. I remember wondering if his producer was purposely leaching his sagacity and relevance by guiding him to those AM shows.
Now, I find a way around to his excellence- the videos that say "Facts" are much more densely packed, useful for well studied persons, and those who want something apart from shock jocks, rants, raves (a la Mark Levin).
Recommend these "Facts" videos as some of the most worthy videos seen online for some years now.
Ben can we get a follow-up vid as what some solutions are to this problem.
Thomas Sowell and/or Art Laffer are great at explaining this stuff
Thanks BEN
I still don't get how a person who was not elected by popular vote has so much power over this country.
The fed fund rates really doesn’t have that much power. And also the Supreme Court exists. The reason is 1 the idea is you vote on people and they vote on more people. And 2 that some positions are meant to be bipartisan and few people would be bipartisan if it’s an elected position b/c they would gain more votes by appealing to 1 side specifically.
Wait.. how can the president elect someone to chair of the fed but cannot remove them as chair of the fed? What is this? No backsys?
Are we really not talking about the fact that Jeney Yellen is now Treasury Secretary?
We are supposed to believe that those people aren't political when there is a clear revolving door between them and the politics?
It's the same in the EU, Draghi was in politics before leading the ECB.
I used to work at Fed, Ben. Hit me up if you want the truth about what goes on inside that building.
But fantastic video!
The economy is doing so well, they're cutting rates. Scary. I'm actually surprised, honestly thought they wouldn't cut at all this year. I was waiting for a rug pull decision.
They are cutting to make Kamala look good but raise it after she wins by triple. They shouldn’t be cutting at all.
I'm confused by the plug for Birch Gold Group after saying our money isn't convertible into gold anymore--sounds like a scam...
This entire video felt like an infomercial for gold
"Gold is money, nothing else is." - JP Morgan 1912.
This would be to help Kamala! Watch it jump if Kamala wins! 🙄
The rate wasn’t lowered to help Kamala. It was lowered to hopefully help slow the rate of increase of unemployment.
Great video before and after the buy gold commercial.
Saying that the government "can repay debt any time" may be true in the physical sense, as it (we) can always print or borrow more, but in a financial sense, we can't repay a penny. In fact, we'd have to reduce Federal spending by 61% for the government to have just enough left after paying expenses to pay ONE PENNY of debt (at that point, the government's income would be $ .01 higher than its expenses, so paying the penny of debt would mean we'd be at break-even.
Since cutting Federal spending 61% will most likely not be seen as a potential solution, we could get there by raising taxes. Doing this would mean each of the 127 million U.S. households would pay an additional $1,965 a MONTH in taxes. I'm wondering if that might work....
Remember that just 23 years ago we had a small surplus (2001), so all we needed to do was just keep our spending at or below income and no extra spending cut or tax increase would be necessary for the Federal budget to at least be at break even..... Imagine your $80,000 household income is just enough to cover all your expenses and also pay your mortgage and car payment - nothing left over but at least paying all bills. Then imagine fast-forwarding and you're earning $100,000 but now have a larger car payment plus payments on an additional million dollars of credit card debt...
Keep in mind that even with either of these nightmarish scenarios, it would only mean we'd have one penny to pay towards INTEREST, and still wouldn't allow us to repay any principal.
I listened to this entire episode as if Ben were rapping with Tom McDonald's
Great video Ben.
And here I was thinking it was going to be a Helix Sleep ad during this video
Brilliant video.
Serious question, what exactly will gold do for me?
Keep you from eating your pets if Kamala wins. She will turn us into Venezuela.
It acts as a failsafe in case the USD crashes because Golds value has been stable and rises against inflation.
So if instead of saving 50k dollars in a savings account that'll only depreciate with inflation, you use that $50k to buy that much on gold, and that $50k in gold will only grow in value against inflation as the dollar becomes worth less and less.
@@Archangel657 I get that but I still don’t quite understand why we put so much value in gold? It is weak as an element. I get the the US dollar is just worthless paper but how is an element much better? Can gold solve all of my problems realistically? Or is it just because we can’t “print” gold the way we do with money?
You can put it on your teeth and you’ll be rock’n one dope grill.
@@genxtechguy well, you are right about that. Certainly can’t do that with paper.
Bitcoin needs to become the world currency. Take the power away from the governments and the banks. Give it back to the people.
Digits on a computer. Not worth anything.
Had this problem since 1900’s
There is actually an alternative I came up with.
I call it a consumer’s alliance.
It could be used to gain economic benefits for everyone including businesses for low taxes, low regulation and bailouts in exchange for access to our consumption power through light inflation without bankrupting the place on a non-consensual capital flight situation.
Imagine a collective boycott in the form of a cryptocurrency.
.... Dude, Governments are like organized crime & they're already workin on that!!
... terrifying.
What is the painting at 1:58?? I like the painting lol
Most likely a AI rendered version of a traditional American Landscape oil painting. Made famous by artist such as Jasper Francis Cropsey and Joshua Shaw.
You didn't cover the title of the episode.
Is there a part two?
Thank you Ben
i feel like i should say true is stranger than fanstay, but that just some crazy truth holly cow
You don’t mess with mother nature and you don’t mess with interest rates
And that is why you’re one of the good ones!
Ok, but… *did the federal reserve board grow up in a middle class family?*
More content like this please
Having a central authority control interest rates is why we have a boom and bust cycle.
It's exacerbated by manipulated interest rates. Not the cause.
When is the daily wire going to offer solutions to this crisis?
When are you? But seriously, I don’t think there is a solution at this point above the individual level. Educate yourself on the problem and take the necessary steps to attempt to maintain some resemblance of security.
@@smokeydapot I support the Convention of States. They can propose a balanced budget constitutional amendment to be voted on by all states.
@@danielwessel9884 I like where your heads at, but I foresee two problems. One, just the impossibility of getting 3/4 of the states to agree on anything at the moment; two, COVID policy worked to establish the precedent that modern Americans will, for the most part, allow the suspension of their fundamental rights in the Constitution without too much fuss should there be a large enough fear campaign pushed for a given emergency. We all know the statistics by now regarding government debt and spending before, and after the pandemic. How would your amendment not be shelved as well at the time it would be needed most?
@@smokeydapot The same tactic will work. Fear is a big motivator. If the markets start believing that portions of the debt will not be paid ( which is where we are headed with interest payments now at 30% of tax revenue collected ) it suddenly provides a way out for Congress with their being thrown out of office if they don't do something and can use the amendment as a scapegoat why they can't fund pet projects. One way or another it will be dealt with, either a massive economic collapse when the government defaults, or serious belt tightening and massive cuts in government services, while troublesome don't have the same level of impact.
"If you don't design your own life's plan, chances are you'll fall into somebody else's plan. And guess what they have planned for you? Not much.'' Jim Rohn
Interest rates matter a lot. This was just a basic history lesson.
I dunno what any of this means but i agree
Ron Paul wrote a book called "End The Fed" a long time ago. If you're interested in this topic it's pretty easy to read and decently informative.
When I started listening to Ben, well before Covid, if we had said what Ben said in the opening here, that the economy is controlled by Central Bankers, not only would we have been called conspiracy theorists, but even Ben himself would have called us that.
Informative. Good episode.
I like the Gold bombs... not so subtle
I knew a gold advert was coming
Easy times creates weak men.
Must be why Americans are weak.
This shouldnt stop you from investing in turnkey multifamily properties
The federal reserve needs to go. Return back to the reserve gold standard
1/2 a point means nothing. What a slap in face to Americans.
And that 1/2 point will cause futher inflation because people and the government don't know how to use money wisely
@@Tambrose0405 and watch house prices go up.
It means something if you already have any type of floating rate mortgage or business loan.
@@jwalesoutlaw3294mortgages aren’t tied to that rate and mortgage rates didn’t really change after that .50 reduction.
The rate cut was a scam to help Kamala during the election.
@nunyabizness6662 what? Lol
In Powell We Trust
Good stuff!